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olga55 [171]
3 years ago
8

Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly

contribution format income statement below:
Sales $1,500,000 Variable expenses 588,000 Contribution margin 912,000 Fixed expenses 945,000 Net operating loss $ (33,000)
In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the Accounting Department has developed the following data:
Geographic Market South Central North Sales $400,000 $600,000 $500,000 Variable expenses as a percentage of sales 52% 30% 40% Traceable fixed expenses $240,000 $330,000 $200,000
Required: i. Prepare a contribution format income statement segmented by geographic market, as desired by the president. ii. The company’s sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising were increased by $25,000. Would you recommend the increased advertising? Show computations to support your answer.
Business
1 answer:
german3 years ago
3 0

Solution :

Particulars                   \text{Total company}          \text{South  }           \text{Central}          \text{North}

Sales                           $1,500,000              $400,000      $600,000     $500,000

Variable expenses        588,000                208000       180000     200000

Contribution margin      912000                  192000        420000    300000

Traceable fixed          770,000                    240,000      330,000    200,000

expenses          

Geographic market      142,000          -$48000              $90000       $100000

segment expenses

Common fixed

expenses not traceable

to geographic markets

Net operating income

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Elan Coil [88]

When someone believes their language is superior to others', they may become defensive. The descriptive language should be utilized in this circumstance to steer the debate away from defensiveness.

<h3>What is descriptive style?</h3>

When an author writes in a descriptive style, they are using words to paint a picture for their audience of a person, place, or thing. To convey the author's impressions through their five senses.

In descriptive communication, a person tries to figure out about the determination of what information is true, is nondefensive, but evaluative communication is perceived as hunting for information that makes a listener defensive.

Empathy is emotional support for others, putting the listener in a non-defensive position, while equality puts both the listener and the speaker on an equal footing, promoting non-defensiveness.

This is because they seek knowledge that the listener may perceive as dangerous, evaluative and problem-solving are defensive.

Therefore, the person is thinking about the descriptive style.

To learn more about the descriptive style, refer to:

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5 0
2 years ago
A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as ed
den301095 [7]

Answer:

Break-even point in units= 2,984 units

Explanation:

Giving the following information:

The one-time fixed costs will total 49982. The variable costs will be $8.50 per book. The publisher will sell the finished product to bookstores for 25.25 per book

<u>To calculate the break-even point in units, we need to use the following formula:</u>

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Break-even point in units= 49,982/ (25.25 - 8.5)

Break-even point in units= 2,984 units

7 0
3 years ago
Jackson is buying a home for $412,000. his interest rate on the loan will be 4.75or 15 years. he will have a down payment of $16
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Answer:

96%

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Answer:

a. adds $10,000 in bank reserves.

Explanation:

Given that

Reserve requirement is 20%

Now if you want to pay back the loan of $10,000 so here the act of paying back the loan is that the amount of loan i.e. $10,00 would get added to the bank reserves

Therefore as per the given situation, the option a is correct

And, the same is to be considered

Thus, all the other options are incorrect

4 0
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